Who Owns KB Home Company?

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Who Owns KB Home?

Understanding KB Home's ownership is key to grasping its strategic direction and accountability. Founded in 1957, the company transitioned to public ownership via its IPO in 1961, enabling significant growth and capital access.

Who Owns KB Home Company?

This shift from its founders, Donald Bruce Kaufman and Eli Broad, to a public entity has shaped its journey as one of America's largest homebuilders, having constructed close to 700,000 homes.

As of July 24, 2025, KB Home, with its focus on personalized, built-to-order homes, boasts a market capitalization of approximately $3.93 billion. This public status means ownership is distributed among various shareholders, including institutional investors and individual public investors, each influencing the company's path. For a deeper dive into its market position, consider a KB Home Porter's Five Forces Analysis.

Who Founded KB Home?

KB Home's journey began in 1957, founded by Donald Bruce Kaufman and Eli Broad in Detroit, Michigan. Initially named Kaufman & Broad Building Company, the venture was fueled by a $25,000 loan from Eli Broad's in-laws, aiming to capitalize on the post-war housing boom.

Founder Role Initial Contribution
Donald Bruce Kaufman Home Building & Entrepreneurship Expertise in construction
Eli Broad Finance & Administration $25,000 loan
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Affordable Housing Focus

The founders prioritized affordability, exemplified by their 'Award Winner' model priced at $13,700. This strategy involved streamlining construction by omitting basements and offering carports.

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Rapid Early Growth

Within two years of its establishment, the company had successfully built 600 homes in the Detroit suburbs. This demonstrated the strong market demand for their accessible housing solutions.

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Going Public

In 1961, the company took a significant step by going public. The initial public offering raised approximately $1.8 million, providing crucial capital for expansion and future development.

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Division of Responsibilities

Donald Kaufman managed the operational aspects, including production, purchasing, and quality control. Eli Broad focused on the financial and administrative elements of the business.

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Core Vision

The company's foundational vision was centered on providing entry-level homes. This commitment to accessibility remained a driving force throughout its early operations and growth phases.

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Initial Capitalization

The initial funding for the company was secured through a loan of $25,000. This modest sum was provided by Eli Broad's in-laws, underscoring the entrepreneurial spirit of the founders.

The founders' strategic approach to building affordable homes, coupled with their distinct operational roles, laid a strong foundation for the company's early success. This focus on accessibility and efficient construction practices was key to their expansion in the post-war housing market, aligning with their Mission, Vision & Core Values of KB Home.

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Key Early Milestones

The early years of the company were marked by significant achievements that set the stage for future growth and market presence.

  • Establishment in 1957 by Donald Bruce Kaufman and Eli Broad.
  • Initial capital secured through a $25,000 loan.
  • Successful construction of 600 homes within the first two years.
  • Public offering in 1961, raising approximately $1.8 million.
  • Focus on affordable housing models like the 'Award Winner'.

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How Has KB Home’s Ownership Changed Over Time?

KB Home's ownership journey began with its founding and subsequent public offering, marking significant milestones in its corporate history. The company, initially Kaufman and Broad, Inc., was the first home builder to be listed on the New York Stock Exchange in 1969, transitioning to KB Home in 2001. This evolution reflects a shift towards a more diversified ownership base.

Investor Type Percentage of Ownership (as of July 25, 2025) Key Holders
Institutional Investors 96.09% BlackRock, Inc., The Vanguard Group, Inc., KLP Kapitalforvaltning AS
Other 3.91%

As a publicly traded entity, KB Home's ownership is primarily held by institutional investors, indicating a broad base of shareholders rather than a single controlling owner. This structure is common for large corporations and means that decisions are often influenced by the collective interests of these major shareholders. The company's financial performance, such as its 2024 total revenues of $6.93 billion, with homebuilding operations contributing 99.6%, and its market capitalization of $3.93 billion as of July 24, 2025, are key factors that attract and retain these institutional stakeholders. Understanding the Growth Strategy of KB Home is crucial for comprehending the dynamics of its ownership.

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Major Stakeholders in KB Home

Institutional investors collectively own the vast majority of KB Home's stock. These entities play a significant role in the company's governance and strategic direction.

  • BlackRock, Inc. holds 13.5% of the class.
  • The Vanguard Group, Inc. owns 10.3%.
  • KLP Kapitalforvaltning AS recently increased its stake by 28.6%.
  • The company's market capitalization was $3.93 billion on July 24, 2025.

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Who Sits on KB Home’s Board?

The current Board of Directors for KB Home is comprised of eight members, tasked with guiding the company's strategic direction and governance. Jeffrey T. Mezger holds the key positions of Chairman, President, and Chief Executive Officer, a role he has fulfilled since 2006, and has served as Chairman of the Board since August 2016. Dorene C. Dominguez serves as the Lead Independent Director, with the board featuring a blend of seasoned business executives and financial experts.

Director Name Key Role Tenure Start
Jeffrey T. Mezger Chairman, President, CEO 2006 (CEO), 2016 (Chairman)
Dorene C. Dominguez Lead Independent Director [Year Not Specified]
[Director Name 3] [Role] [Year Not Specified]
[Director Name 4] [Role] [Year Not Specified]
[Director Name 5] [Role] [Year Not Specified]
[Director Name 6] [Role] [Year Not Specified]
[Director Name 7] [Role] [Year Not Specified]
[Director Name 8] [Role] [Year Not Specified]

KB Home operates under a straightforward voting structure where each share of common stock grants its holder one vote. There are no special voting requirements beyond those mandated by Delaware law, ensuring a consistent application of shareholder influence. It's important to note that stock units held by directors do not carry voting rights. The company's governance and nomination committee is responsible for the selection of board members, a process where shareholders have the opportunity to vote on these appointments. Directors and senior executives are subject to substantial stock ownership requirements, and they are restricted from pledging or hedging their company security holdings. KB Home actively engages with its stockholders throughout the year to discuss business strategy, performance, and future outlook. The 2025 Annual Meeting of Stockholders is scheduled for April 17, 2025, and will be conducted via an online webcast.

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Understanding KB Home's Shareholder Influence

KB Home's governance structure emphasizes shareholder participation through a one-share-one-vote system. This ensures that voting power is directly tied to the number of shares owned, providing a clear mechanism for influence.

  • Each common share carries one vote.
  • No supermajority voting requirements exist, except as legally mandated.
  • Directors' stock units do not grant voting rights.
  • Shareholders vote on board member appointments.
  • Executive stock ownership requirements are significant.
  • Hedging and pledging of executive stock holdings are prohibited.

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What Recent Changes Have Shaped KB Home’s Ownership Landscape?

Recent capital allocation strategies by KB Home have focused on shareholder returns, notably through substantial share repurchases. These actions are designed to boost long-term stockholder value by decreasing the outstanding share count.

Share Repurchase Period Shares Repurchased Cost
Q1 2025 753,939 $50.0 million
Q2 2025 3,734,675 $200.0 million
Total H1 2025 4,488,614 $250.0 million

As of May 31, 2025, KB Home had $450.0 million remaining under its $1 billion common stock repurchase authorization, initially approved in April 2024. The company's financial performance in 2024 included total revenues of $6.93 billion and diluted earnings per share of $8.45. For the second quarter of fiscal year 2025, KB Home reported revenues of $1.53 billion and diluted earnings per share of $1.50, with a 11% decrease in homes delivered to 3,120. Despite a challenging housing market influenced by elevated mortgage rates and affordability concerns, KB Home maintained a strong financial standing with $1.19 billion in total liquidity as of May 31, 2025. The company has revised its fiscal year 2025 housing revenue guidance to a range of $6.30 billion to $6.50 billion. Industry-wide, there's a notable increase in institutional ownership, with hedge funds and other institutional investors holding 96.09% of KB Home's stock as of July 25, 2025, indicating sustained investor interest in the homebuilding sector.

Icon Share Buyback Strategy

KB Home has actively repurchased shares, aiming to enhance shareholder value. This strategy is a key component of their capital allocation.

Icon Financial Performance Overview

The company reported significant revenues and earnings per share in 2024. Despite market headwinds in Q2 2025, liquidity remains robust.

Icon Market Position and Guidance

Adjusted revenue guidance reflects market conditions. KB Home continues to navigate the housing market's complexities.

Icon Institutional Investor Interest

Institutional ownership is exceptionally high, signaling strong confidence from major financial entities. This trend underscores the sector's appeal to large investors.

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